Walmart is cautious with expectations after slowest sales growth in 6
years
[August 21, 2026] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Walmart reported its slowest growth in U.S. comparable
sales in six years during its most recent quarter, and the retailer’s
guidance for the rest of the year was seen as cautious by Wall Street.
Walmart’s second quarter fanned anxiety about the financial well-being
of low-income shoppers who are spending cautiously as prices rise at the
gas pump and everywhere else.
Company shares tumbled more than 8% Thursday and helped drag the U.S.
stock market lower as well.
Walmart’s comparable sales in the U.S., which measure sales at stores
open at least a year along with online sales tied to those locations,
rose 2.6% in the second quarter. That is down from 4.1% in the first
quarter.
Excluding the wellness category that includes Walmart’s pharmacies,
comparable sales increased 3.4% in the second quarter. Sales were hit by
federal legislation that requires pharmacies to dispense some high-cost
Medicare drugs at capped prices, the retailer said. That was still below
Wall Street projections of a 3.8% increase, according to FactSet.
Still, Walmart’s quarterly profit, boosted by a $2.9 billion tariff
refund, topped expectations, and so did revenue. Walmart says it
continues to take market share.
Walmart is using the U.S. tariff refunds to temporarily lower prices on
11,000 items, it said Thursday, particularly on groceries and general
merchandise.
The U.S. Supreme Court ruled this year that President Donald Trump
overstepped his authority when he imposed double-digit import taxes,
meaning U.S. companies were owed refunds from the government.
Yet Walmart is trying to contain prices as it is squeezed by the same
pressures hammering the American consumer, namely rising energy costs
due to fighting in Iran. The company expects to book an additional $2
billion in incremental fuel costs this year.
Slowing comparable sales, particularly in Walmart stores, also reflect a
strategic shift toward e-commerce, Walmart+ memberships and advertising.
Walmart’s domestic e-commerce business, which has become a growth engine
for the retailer, rose 24%.
U.S. e-commerce now represents 23% in the overall U.S business., Walmart
said, double the share five years ago.
“As these businesses scale, they become a more meaningful part of our
mix, and they’re changing the shape of our business,” CEO John Furner
said Thursday.
Walmart is considered a barometer of consumer spending given its vast
customer base. More than 150 million customers are on its website or in
its stores every week, according to Walmart.
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The Walmart logo is displayed on a store, Aug. 14, 2025, in
Manchester, N.H. (AP Photo/Charles Krupa, File)
 Walmart’s trajectory may draw even
more attention after U.S. data released Friday showed retail sales
were surprisingly weak in July. On the same day, a new read on
consumers from the University of Michigan revealed growing pessimism
about the economy.
Chief Financial Officer John David Rainey said Friday that when
gasoline prices rise above $4, the company can feel it.
“There’s a psychological impact to that ... that there are choices
that consumers are making,” Rainey said. “June was a little more
obvious as we look at the quarter in terms of customers making
trade-offs. And it’s why we have leaned so heavily into lower
prices.”
The price of a gallon of gasoline ticked higher again overnight,
according to AAA, reaching $4.10.
With prices higher, Walmart continues to capture a larger share of
wealthier consumers. The biggest gains in market share for Walmart
are coming from households with annual incomes over $100,000, the
retailer has said.
Walmart’s quarterly net income was $6.37 billion, or 80 cents per
share, in the three-month period ended July 31. Adjusted per-share
results were 81 cents, easily topping the 74 cents Wall Street had
expected, according to FactSet.
Sales rose 5.9% to $187.94 billion. Analysts were predicting $186.62
billion, according to FactSet.
For the third quarter, Walmart expects earnings per share of 62
cents to 64 cents. It projects sales to be up 3% to 3.75%, putting
sales in a range of $184.9 billion to $186.23 billion.
For the full year, Walmart now expects earnings per share to be in
the range of $2.80 to $2.87, while sales should be up anywhere from
4% to 5%. That would mean a forecast for sales in the range of
$741.7 billion to $748.8 billion, according to FactSet.
Analysts expected $2.90 per share and sales of $752.06 billion for
the year, according to FactSet.
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